The impact of the EU sugar trade reform on poor households in developing countries: A general equilibrium analysis

We use a modified version of the applied general equilibrium model GTAP, called GTAP(MH), to evaluate the impact of a reduction in the EU's support price for sugar on income distribution of African households. For LDC countries, non-ACP but participant in the EBA initiative a +2% change is indicated in term of income generation across all ten social strata identified within GTAP(MH) framework, with positive percentage changes in supply prices at household level of endowment commodities, and positive percentage changes in price indices for private household expenditures. The big losers will be those countries that would no longer be able to compete at an international level as a result of the lost preferences. (C) 2010 Society for Policy Modeling. Published by Elsevier Inc. All rights reserved.